NAND memory has historically been one of the most cyclical segments of the semiconductor market, with pricing driven by periods of oversupply followed by sharp recoveries. In prior cycles, demand was largely tied to consumer electronics like smartphones and PCs, which created more volatile swings. This time may be different. The rise of artificial intelligence and hyperscale data centers is creating a more സ്ഥിര, enterprise-driven demand base that could extend the current upcycle and support more durable pricing strength.

To highlight that point, Bernstein analyst Mark Newman wrote, if average selling prices for NAND memory offerings jump 75% sequentially in the March quarter, and another 75% in the June quarter, SNDK could rally to $3,000 a share.

For the time being, Bernstein now has a Street-high target of $1,250, noting that the market is significantly undervaluing earnings power and cycle sustainability. 

However, analysts at Cantor Fitzgerald are also bullish, raising their price target to $1,000.  Like Bernstein, the firm credits the higher price target to stronger-than-expected NAND flash pricing.  

But why should you believe the analysts? For that, you can look at the company’s recent earnings report. In its second quarter, SanDisk reported revenue of $3.03 billion, a 61% year-over-year increase. Data center revenue climbed even faster, jumping 76% to $440 million. At the same time, gross margins expanded to 50%, reflecting both pricing strength and operational efficiency. Looking ahead, analysts expect third-quarter revenue to increase more than 50% sequentially.

Supply Can’t Keep Up With Demand

On the supply side, NAND production is not something that can quickly scale to meet demand. Building and ramping up advanced fabrication facilities requires billions of dollars in capital and years of development. At the same time, the industry has consolidated into a smaller group of major players, limiting the likelihood of aggressive overproduction. These constraints are helping keep supply tight, which in turn is reinforcing pricing power across the market.

We also have to consider that artificial intelligence will continue to create massive demand for data centers, which will lead to further demand for NAND. After all, NAND is a vital part of the AI infrastructure for massive amounts of data storage, speed and performance.

Consider this. According to MIT Technology Review, there are about 3,000 data centers across the U.S. Plus, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030. Again, growing demand for data centers will mean growing demand for more NAND memory in an already tight market.

McKinsey analysis suggests that demand for AI-ready data center capacity could grow at an annual rate of 33% between 2023 and 2030. This sustained expansion is likely to keep pressure on supply chains and support higher pricing for NAND products over the long term. For companies like Sandisk, that creates a powerful tailwind.

Analysts Have High Expectations with Earnings

As Sandisk nears its April 30 earnings release, expectations are running high. 

Analysts are forecasting revenue of $4.4 billion to $4.8 billion, representing year-over-year growth of roughly 159% to 182%. EPS is projected to come in between $12 and $14, while gross margins are expected to expand further to a range of 65% to 67%.

Investors will be paying close attention to several key factors in the report. Continued growth in data center revenue will be critical in supporting the company’s valuation, as this segment is seen as a primary driver of long-term demand. Additionally, any indication that NAND flash prices are continuing to rise—or that supply shortages could persist through 2028—would reinforce the bullish thesis.

Sandisk’s Earnings Could Be the Next Catalyst for Another Breakout

Of course, investors should also keep in mind that memory pricing can shift quickly if supply-demand dynamics change or if macroeconomic conditions weaken, which could introduce volatility even in a strong long-term trend.

In the end, with explosive growth, tight memory supply, and powerful demand from artificial intelligence and data center expansion, Sandisk appears well-positioned for further upside. 

As the company heads into its upcoming earnings report, investors will be watching closely for confirmation that pricing strength, margin expansion, and data center growth remain intact. If those trends hold, Sandisk may not only justify its recent gains but could have significantly more upside ahead – potentially testing $3,000.

In fact, according to analysts at Bank of America, SAND stock could test $300 thanks to growing demand from data centers and artificial intelligence.

This isn’t exclusive to SAND stock; the NAND market could expand even further, thanks to the substantially growing appetite of artificial intelligence data centers that are just starting to consume a massive chunk of global memory and flash production capacity. 

The NAND Market Has a Multi-Year Tailwind

Consider this forecast from Global Market Insights. The global NAND flash market was valued at $65.1 billion in 2024. However, it’s projected to grow at a compound annual growth rate (CAGR) of 5.6% from 2025 to 2034.

And at the moment, NAND supply cannot keep up with demand. This is a supply and demand issue that will take years to sort out. That was the conclusion drawn by the MIT Technology Review. There are about 3,000 data centers across the United States. However, AI will continue to create massive demand for data centers. That will lead to further demand for NAND, which is crucial for AI infrastructure.

Also, according to a report from McKinsey, $5.2 trillion in AI infrastructure investments will be needed by 2030. Again, growing demand for data centers will mean growing demand for more NAND memory in an already tight market.

In addition, McKinsey’s analysis suggests that demand for AI-ready data center capacity will rise at an average rate of 33 percent a year between 2023 and 2030 (reflecting a trend that is already underway.), according to analysts at McKinsey, as reported by BOMA International.

Given the requirements of AI data centers, demand for NAND will only rise, fueling even more upside for stocks, such as Sandisk.

Current Capex Will Fuel the NAND Market

The global AI market already surpassed $230 billion in 2024. Analysts now see a clear path to multi-trillion-dollar expansion – and the next five years may deliver the strongest gains yet.

Forecasts now place AI’s value between $1.7 and $3.5 trillion by the early 2030s, with the most aggressive estimates topping $7 trillion by 2035. And judging by the surge in corporate investment, the market is moving toward the high end of those projections.

In fact, some of the largest tech companies are sending a clear message that the AI boom is far from over. Just look at recent capex spending.

• Alphabet (NASDAQ: GOOGL) raised its 2025 capex outlook to $91–$93B
• Microsoft (NASDAQ: MSFT) is increasing spending 74% to $34.9B
• Meta Platforms (NASDAQ: META) nearly doubled capex to $19.37B, far above expectations
• Amazon (NASDAQ: AMZN) projects $125B in 2025 capex, with more increases planned for 2026

For investors, these numbers are impossible to ignore. Even better, analysts at UBS now expect global AI capex to hit $571B in 2026, with a runway to $3 trillion by 2030.